{"id":1334,"date":"2014-12-20T00:00:00","date_gmt":"2014-12-19T18:30:00","guid":{"rendered":""},"modified":"2015-12-30T13:11:01","modified_gmt":"2015-12-30T07:41:01","slug":"finance-minister-intoduces-the-constitution-amendment-bill-on-goods-and-services-tax-gst-in-lok-sabha","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/gst\/finance-minister-intoduces-the-constitution-amendment-bill-on-goods-and-services-tax-gst-in-lok-sabha\/","title":{"rendered":"Finance Minister Intoduces the Constitution Amendment Bill on Goods and Services Tax (GST) in Lok Sabha"},"content":{"rendered":"<table cellpadding=\"0\" width=\"100%\">\n<tbody>\n<tr>\n<td>\n<p><strong>New Article 246a Proposed to Confer Simultaneous Power to<br \/>\n  Union and State Legislatures to Legislate on GST ; Centre To Compensate<br \/>\n  States for Loss of Revenue Arising on Account of Implementation of the GST<br \/>\n  for a period up to Five Years&nbsp;<\/strong><\/p>\n<p><strong><br \/><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align:justify\">The<br \/>\n  Union Cabinet approved on 17th December,2014 the proposal for introduction of<br \/>\n  a Bill in the Parliament for amending the Constitution of India to facilitate<br \/>\n  the introduction of Goods and Services Tax (GST) in the country. The Union<br \/>\n  Finance Minister Shri Arun Jaitley introduced the said Bill in the Lok Sabha<br \/>\n  today.&nbsp;<\/p>\n<p>  The proposed amendments in the Constitution will confer powers both to the<br \/>\n  Parliament and State legislatures to make laws for levying GST on the supply<br \/>\n  of goods and services in the same transaction.&nbsp;<\/p>\n<p>  GST will simplify and harmonise the indirect tax regime in the country. GST<br \/>\n  will broaden the tax base, and result in better tax compliance due to a<br \/>\n  robust ITinfrastructure. Due to the seamless transfer of input tax credit<br \/>\n  from one state to another in the chain of value addition, there is an<br \/>\n  in-built mechanism in the design of GST that would incentivize tax compliance<br \/>\n  by traders. It is thus, expected that introduction of GST will foster a<br \/>\n  common and seamless Indian market and contribute significantly to the growth<br \/>\n  of the economy.&nbsp;<\/p>\n<p>  Following are the salient features of this Bill:&nbsp;<\/p>\n<p>  \u2022 A new Article 246A is proposed which will confer simultaneous power to<br \/>\n  Union and State legislatures to legislate on GST.&nbsp;<\/p>\n<p>  \u2022 A new Article 279A is proposed for the creation of a Goods &amp; Services<br \/>\n  Tax Council which will be a joint forum of the Centre and the States. This<br \/>\n  Council would function under the Chairmanship of the Union Finance Minister<br \/>\n  and will have Ministers in charge of Finance\/Taxation or Minister nominated<br \/>\n  by each of the States &amp; UTs with Legislatures, as members. The Council<br \/>\n  will make recommendations to the Union and the States on important issues<br \/>\n  like tax rates, exemptions, threshold limits, dispute resolution modalities<br \/>\n  etc.&nbsp;<\/p>\n<p>  \u2022 It is proposed to do away with the concept of \u2018declared goods of special<br \/>\n  importance\u2019 under the Constitution.&nbsp;<\/p>\n<p>  \u2022 Centre will compensate States for loss of revenue arising on account of<br \/>\n  implementation of the GST for a period up to five years. A provision in this<br \/>\n  regard has been made in the Amendment Bill (The compensation will be on a<br \/>\n  tapering basis, i.e., 100% for first three years, 75% in the fourth year and<br \/>\n  50% in the fifth year).&nbsp;<\/p>\n<p>  The proposed GST has been designed keeping in mind the federal structure<br \/>\n  enshrined in the Constitution and will have the following important<br \/>\n  features:&nbsp;<\/p>\n<p>  \u2022 Central taxes like Central Excise Duty, Additional Excise Duties, Service<br \/>\n  Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs<br \/>\n  (SAD), etc. will be subsumed in GST.&nbsp;<\/p>\n<p>  \u2022 At the State level, taxes like VAT\/Sales Tax, Central Sales Tax,<br \/>\n  Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc.<br \/>\n  would be subsumed in GST.&nbsp;<\/p>\n<p>  \u2022 All goods and services, except alcoholic liquor for human consumption, will<br \/>\n  be brought under the purview of GST. Petroleum and petroleum products have<br \/>\n  also been Constitutionally brought under GST. However, it has also been<br \/>\n  provided that petroleum and petroleum products shall not be subject to the<br \/>\n  levy of GST till notified at a future date on the recommendation of the GST<br \/>\n  Council. The present taxes levied by the States and the Centre on petroleum<br \/>\n  and petroleum products, i.e., Sales Tax\/VAT, CST and Excise duty only, will<br \/>\n  continue to be levied in the interim period.&nbsp;<\/p>\n<p>  \u2022 Both Centre and States will simultaneously levy GST across the value chain.<br \/>\n  Centre would levy and collect Central Goods and Services Tax (CGST), and<br \/>\n  States would levy and collect the State Goods and Services Tax (SGST) on all<br \/>\n  transactions within a State.&nbsp;<\/p>\n<p>  \u2022 The Centre would levy and collect the Integrated Goods and Services Tax<br \/>\n  (IGST) on all inter-State supply of goods and services. There will be<br \/>\n  seamless flow of input tax credit from one State to another. Proceeds of IGST<br \/>\n  will be apportioned among the States.&nbsp;<\/p>\n<p>  \u2022 GST is a destination-based tax. All SGST on the final product will<br \/>\n  ordinarily accrue to the consuming State.&nbsp;<\/p>\n<p>  \u2022 GST rates will be uniform across the country. However, to give some fiscal<br \/>\n  autonomy to the States and Centre, there will a provision of a narrow tax<br \/>\n  band over and above the floor rates of CGST and SGST.&nbsp;<\/p>\n<p>  \u2022 It is proposed to levy a non-vatable additional tax of not more than 1% on<br \/>\n  supply of goods in the course of inter-State trade or commerce. This tax will<br \/>\n  be for a period not exceeding 2 years, or further such period as recommended<br \/>\n  by the GST Council. This additional tax on supply of goods shall be assigned<br \/>\n  to the States from where such supplies originate.&nbsp;<\/p>\n<p style=\"text-align:center\">******<\/p>\n<p>DSM\/ka&nbsp;<br \/>\n  (Release ID :113831)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;Source: PIB<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Article 246a Proposed to Confer Simultaneous Power to Union and State Legislatures to Legislate on GST ; Centre To Compensate States for Loss of Revenue Arising on Account of Implementation of the GST for a period up to Five Years&nbsp; The Union Cabinet approved on 17th December,2014 the proposal for introduction of a Bill &#8230; <a title=\"Finance Minister Intoduces the Constitution Amendment Bill on Goods and Services Tax (GST) in Lok Sabha\" class=\"read-more\" href=\"https:\/\/taxclick.org\/type\/gst\/finance-minister-intoduces-the-constitution-amendment-bill-on-goods-and-services-tax-gst-in-lok-sabha\/\" aria-label=\"More on Finance Minister Intoduces the Constitution Amendment Bill on Goods and Services Tax (GST) in Lok Sabha\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[15],"tags":[217],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Finance Minister Intoduces the Constitution Amendment Bill on Goods and Services Tax (GST) in Lok Sabha - All About Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxclick.org\/type\/gst\/finance-minister-intoduces-the-constitution-amendment-bill-on-goods-and-services-tax-gst-in-lok-sabha\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finance Minister Intoduces the Constitution Amendment Bill on Goods and Services Tax (GST) in Lok Sabha - All About Finance\" \/>\n<meta property=\"og:description\" content=\"New Article 246a Proposed to Confer Simultaneous Power to Union and State Legislatures to Legislate on GST ; Centre To Compensate States for Loss of Revenue Arising on Account of Implementation of the GST for a period up to Five Years&nbsp; The Union Cabinet approved on 17th December,2014 the proposal for introduction of a Bill ... 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